IMF fears China growth could slow to 4%; China warns the world

The IMF said yesterday that China’s economic expansion would becut almost in half if Europe’s debt crisis worsens, a scenariothat would warrant “significant” fiscal stimulus from thenation’s government.

“China’s growth rate would drop abruptly if the euro areaexperiences a sharp recession,” the Washington-based IMF said.“However, a track record of fiscal discipline has given Chinaample room to respond to such an external shock.”

Hard or soft landing?

In an interview to CNN, Singapore’s Prime Minister Lee Hsien Loong came up with a new term, saying China’seconomy may have a “rough landing, but they will get throughit.”

China’s officials are warning everyone…

According to Bloomberg, China’s Ministry of Industry said that the country’s industrial output growth islikely to slow this quarter as the world economy cools andEurope’s debt crisis worsens.

“The global economy is slowing down, Europe’s sovereigndebt crisis is deepening and the downside risks to the worldeconomy are rising with international demand still slack andglobal commodities and financial markets continuing to bevolatile.”

“China’s industry development is facing an increasinglycomplex domestic and international environment with increasedunstable and uncertain factors.”